Question
Ana has a $16,000 Sec. 1231 loss, a $12,000 Sec. 1231 gain, and a salary of $50,000. What is the treatment of these items in
Ana has a $16,000 Sec. 1231 loss, a $12,000 Sec. 1231 gain, and a salary of $50,000. What is the treatment of these items in Ana's AGI?
A) Ana has a LTCG of $12,000 and a net ordinary income of $34,000.
B) The 1231 gains and losses are treated as ordinary gains and losses making Ana's AGI for the year $46,000.
C) Ana has a $3,000 LTCL which is deductible for AGI making AGI $47,000. She also has a $1,000 LTCL carryover.
D) Suki has net LTCG of $9,000 and $37,000 of net ordinary income.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
